Peerless Reports Peace River Arch Discovery

Peerless Energy Inc. announced a significant new exploration discovery in its Peace River Arch, Alberta, core area.

Peerless has a net 20% working interest in a new exploration discovery well. The well tested at a stable rate of over 20 million cubic feet per day at a flowing pressure of 1,500 pounds per square inch. The Company expects the well will be placed on production in early April. Initial production rates may be constrained by gathering system capacity, and an update to this will be provided in a future operational update.

Peerless would also like to confirm that the date for the release of its 2006 fourth quarter and year end will be March 26, 2007.

Peerless Energy Inc. is a junior oil and gas company engaged in the exploration for, and development and production of, natural gas and light oil reserves primarily in the provinces of Alberta, Saskatchewan, and British Columbia.